Section 16 of CA, 2002 : Section 16: Appointment Of Director-General, Etc

Explanation using Example

Imagine a scenario where the Competition Commission of India (CCI) suspects that a leading smartphone manufacturer is engaging in anti-competitive practices by entering into exclusive agreements with online retailers. To investigate this matter, the Central Government, under Section 16 of The Competition Act, 2002, appoints a Director General (DG) to assist the CCI.

The DG, after being appointed, realizes the complexity of the case and the need for a specialized team. Thus, under Section 16(1A), the DG requests the appointment of additional staff, including Assistant Directors with expertise in technology markets and international trade laws. The government approves and prescribes the manner of their appointment.

These appointed officers, as per Section 16(2), work under the direction of the DG to gather evidence, analyze market practices, and interview stakeholders. Their findings are crucial in determining whether the smartphone manufacturer's practices are indeed violating competition laws.

Section 16(3) ensures that the DG and the team are compensated with salaries and allowances as prescribed by the government, providing them the financial stability to focus on the investigation.

Lastly, Section 16(4) ensures that all appointed individuals, including the DG, have the necessary integrity, ability, and experience in relevant fields such as law and economics, to conduct a thorough and effective investigation.